Globix Corporation

Last updated

Globix Corporation is a company that provided internet infrastructure and network services; it went bankrupt following the dot-com bubble, recovered, and was bought by RCN Corporation in 2007.

History

Globix Corporation was founded in 1989 as Bell Technology Group, a value-added reseller of computers; Marc Bell served as CEO from its founding until 2001. [1]

In the mid-1990s the company expanded into Internet products and services [1] and completed an IPO in January 1996. [2]

By June 1998 the company offered "dedicated Internet access, Web Hosting, Co-location, network and systems integration, interactive media development (including 2-D and 3-D animation) and instructor-led corporate training" and changed its name to Globix Corporation. [3]

During the dot-com bubble, Globix bought an eight-story building in New York City to serve as a data center, which was announced at Internet World 2000 by Bell, who cited "tremendous demand for our managed Internet Data Center services". [4] The company already had nearly 300,000 square feet of data center space, and planned four additional centers. [4] The company completed a $600 million bond offering in 2001 to fund further expansion. [1]

As the dot-com bubble burst, in August 2001 the company hired a new CEO [1] and in January 2002, Globix filed for Chapter 11 bankruptcy; its market capitalization had fallen from almost $1 billion in 1999 to $5.87 million. [5] Globix emerged from Chapter 11 bankruptcy in April 2002, with creditors receiving $120 million in notes in exchange for the $600 million in bonds they held. [6] In October 2003 Globix sold its New York City data center to fund operations and retire some of its debt. [4]

In November 2003 Globix acquired Aptegrity Inc., a managed services provider focused on Web-based applications. [7] In July 2004, Globix announced it intended to merge with NEON Communications, Inc., a provider of optical networking to carriers and large companies in the US Northeast and mid-Atlantic, and the deal closed in March 2005. [8] [9] For the fiscal year ending September 30, 2004, Globix reported a net loss of $41.4 million and had $95.8 million in debt. [9]

In late 2005 and 2006 Globix restructured and paid down debt by selling off assets, including its New York city headquarters, a UK subsidiary, and its hosting business, the latter of which it sold to Quality Technology Services. [10]

In February 2007 Globix changed its name to NEON Communications Group, Inc. [11]

In June 2007 RCN Corporation announced it intended to acquire NEON and the deal closed in November 2007. [12] [13]

Related Research Articles

Dot-com bubble Tech stock speculative craze, c. 1997–2003

The dot-com bubble, also known as the dot-com boom, the tech bubble, and the Internet bubble, was a stock market bubble caused by excessive speculation of Internet-related companies in the late 1990s, a period of massive growth in the use and adoption of the Internet.

Lucent Technologies, Inc., was an American multinational telecommunications equipment company headquartered in Murray Hill, New Jersey, in the United States. It was established on September 30, 1996, through the divestiture of the former AT&T Technologies business unit of AT&T Corporation, which included Western Electric and Bell Labs.

Lycos Search engine and web portal

Lycos, Inc., is a web search engine and web portal established in 1994, spun out of Carnegie Mellon University. Lycos also encompasses a network of email, web hosting, social networking, and entertainment websites. The company is based in Waltham, Massachusetts, and is a subsidiary of Kakao.

MCI Inc. Subsidiary of Verizon Communications

MCI, Inc. was a telecommunications company. For a time, it was the second largest long-distance telephone company in the United States, after AT&T. Worldcom grew largely by acquiring other telecommunications companies, including MCI Communications in 1998, and filed bankruptcy in 2002 after an accounting scandal, in which several executives, including CEO Bernard Ebbers, were convicted of a scheme to inflate the company's assets. In January 2006, the company, by then renamed MCI, was acquired by Verizon Communications and was later integrated into Verizon Business.

Global Crossing was a telecommunications company that provided computer networking services and operated a tier 1 carrier. It maintained a large backbone network and offered peering, virtual private networks, leased lines, audio and video conferencing, long distance telephone, managed services, dialup, colocation centres and VoIP. Its customer base ranged from individuals to large enterprises and other carriers, with emphasis on higher-margin layered services such as managed services and VoIP with leased lines. Its core network delivered services to more than 700 cities in more than 70 countries.

Avaya American technology company

Avaya is an American multinational technology company headquartered in Durham, North Carolina, that specializes in cloud communications and workstream collaboration solutions. The company's Avaya OneCloud experience platform includes unified communications (UCaaS), contact center (CCaaS), CPaaS and services. Serving organizations at 220,000 customer locations in 190 countries worldwide, Avaya is the largest pure-play UC and CC company, ranking No. 1 in CC and No. 2 in UC and collaboration. The company had FY20 revenues of $2.9 billion, 88% of which was attributed to software and services.

UUNET

UUNET, founded in 1987, was one of the largest Internet service providers and one of the early Tier 1 networks. It was based in Northern Virginia and was one of the first commercial Internet service providers. Today, UUNET is an internal brand of Verizon Business.

NorthPoint Communications Group, Inc. was a competitive local exchange carrier focused on data transmission via digital subscriber lines. The company had relationships with Microsoft, Tandy Corporation, Intel, Verio, Cable & Wireless, Frontier Corporation, Concentric Network, ICG Communications, Enron, Network Plus, and Netopia. The company had investments from The Carlyle Group, Accel Partners, Benchmark, and Greylock Partners.

INNOVATE Corp., formerly known as HC2 Holdings, Inc. and Primus Telecommunications Group, Inc. (Primus), is a public financial services company.

Hawaiian Telcom, Inc., is the incumbent local exchange carrier (ILEC) or dominant local telephone company, serving the state of Hawaii. In 2005, Hawaiian Telcom Holdco, Inc., was formed by The Carlyle Group, following its purchase of the Hawaiian Telecom Inc. assets of Verizon Communications. On July 2, 2018, Cincinnati Bell purchased Hawaiian Telcom Holdco, Inc. for $650 Million,

AboveNet was a provider of high bandwidth telecommunication circuits primarily for large corporate enterprises and communications carriers in 17 markets in the United States and 4 markets in Europe. Its private optical network delivered key network and IP services and was used in financial and legal services, media, health care, retail, and government.

RCN Corporation American cable television, telephone, and Internet service provider

RCN Corporation, originally Residential Communications Network, founded in 1993 and based in Princeton, New Jersey, was the first American facilities-based ("overbuild") provider of bundled telephone, cable television, and internet service delivered over its own fiber-optic local network as well as dialup and DSL Internet service to consumers in the Boston, New York, eastern Pennsylvania, Washington, D.C., Chicago, and Los Angeles areas.

@Home Network was a high-speed cable Internet service provider from 1996 to 2002. It was founded by Milo Medin, cable companies Tele-Communications Inc. (TCI), Comcast, and Cox Communications, and William Randolph Hearst III, who was their first CEO, as a joint venture to produce high-speed cable Internet service through two-way television cable infrastructure. At the company's peak it provided high speed Internet service for 4.1 million subscribers in the United States, Canada, Japan, Australia, and the Benelux nations. The company operated as four joint ventures, three of which were international. In 1999, the company acquired Excite. In 2008, @Home was merged into Ziggo.

NetBank, formerly named Atlanta Internet Bank (1996) and Net.B@nk (1998), was a direct bank.

Lavastorm is a global analytics software company based in Massachusetts. The company's products are most often used by business analysts looking to take on more responsibility for data preparation and to build advanced analytics, or by IT groups who are looking for more agile ways to provision governed data to business analysts.

Qwest Communications International, Inc. was a large United States telecommunications carrier. Qwest provided local service in 14 western and midwestern U.S. states: Arizona, Colorado, Idaho, Iowa, Minnesota, Montana, Nebraska, New Mexico, North Dakota, Oregon, South Dakota, Utah, Washington, and Wyoming.

Sidera Networks is a New York City-based, privately held, United States owned, telecommunications company that provides fiber optic-based network solutions to the carrier, financial services, education, healthcare, government, legal services and media industries. The company was acquired by Lightower Fiber Networks on April 11, 2013.

360networks, Inc. was a Canadian-based wholesale telecommunications carrier. The company developed many long-haul fiber optic communications network routes throughout North America, many along railroad rights of way, consisting of both dark fiber and lit fiber. These long-haul routes included Chicago to New Orleans, Chicago to Denver, Chicago to Detroit, Chicago to New York, Seattle to Los Angeles, and Denver to San Francisco. In 2011, the company was acquired by Zayo Group.

Gadzoox Networks, Inc. produced hardware and software for the entry-level storage area network market. In 2000, at the peak of the dot-com bubble, the company was valued at $2 billion; however, after filing bankruptcy in 2002, its assets were acquired by Broadcom in 2003 for $5.8 million.

Marc Bell (entrepreneur) American financier and entrepreneur

Marc Bell is an American financier and entrepreneur. He is the managing partner of Marc Bell Capital, a Boca Raton, Florida-based firm founded in 2003. He is also a producer of plays, musicals and movies.

References

  1. 1 2 3 4 Staff, The Wall Street Transcript. September 2, 2002 CEO Interview: Peter Stevenson
  2. ↑ Staff, New York Times. January 22, 1996 Equity and Convertible Offerings for This Week
  3. ↑ Globix Press Release. June 1, 1998 Bell Technology Group Announces Name Change to Globix Corporation
  4. 1 2 3 Rich Miller for the CarrierHotels News October 21, 2003 Globix Sells Manhattan Data Center
  5. ↑ Staff, New York Times. January 15, 2002 Technology Briefing | Internet: Globix Plans To Seek Protection
  6. ↑ Globix Press Release. April 10, 2002. Globix Reorganizes To Emerge From Bankruptcy
  7. ↑ Globix Press Release. November 5, 2003 Globix Completes Acquisition of Aptegrity
  8. ↑ Om Malik for Gigaom July 19, 2004 Globix merges with NEON
  9. 1 2 News wire. Channelpartnersonline.com March 8, 2005. Globix and NEON Communications Merge
  10. ↑ Patrick Barnard for Mobility Techzone October 3, 2006 Globix Selling its US Hosting Business to Quality Technology Services for $20
  11. ↑ NEON Press Release. February 28, 2007 Globix Corporation Becomes NEON Communications Group, Inc.
  12. ↑ News wires. Datacentres.com June 25, 2007 RCN To Acquire NEON Communications Group For Up To $5.25 Per Share
  13. ↑ News wire, Channel Partners Online. November 13, 2007. RCN Wraps up NEON Merger
This page is based on this Wikipedia article
Text is available under the CC BY-SA 4.0 license; additional terms may apply.
Images, videos and audio are available under their respective licenses.